B'nai B'rith Apartments is a 170 unit apartment building located in Reading, PA.  It provides housing for persons aged 62 and over, and others who require the accessible features of the building.  The 12-story building was constructed in 1978, and has been a staple senior housing facility in the Reading community for nearly 40 years.

The mortgage on the property, which was also the original construction loan, carried a 40 year term with 8.735% interest rate.  CapVest worked with the non-profit owner of the building and a state finance agency lender to refinance the existing mortgage.  The refinance lowered the interest rate to 4.625% without stretching the term out too far.  After 10 years, the entire refinance loan will be paid off, and the owner will possess the building free and clear.

The biggest purpose for the refinance was to bolster the property's financial cash flow, as the operational expenses had been on a steady incline and were causing the property to generate a loss for the past few years.  The refinance reduced the property's annual debt service from $444,480 to $236,950, which created $207,530 of annual savings ($17,294 monthly) for the property, going directly towards the bottom line.

The refinance will benefit the property by giving it better financial strength to maintain operations, and by allowing it to continue providing decent and comfortable housing for seniors well into the future.